New York's Congestion Charge Set to Make a Comeback

New York's congestion charge, initially planned at $15, will now be $9 starting January, per Governor Kathy Hochul. Aimed at improving environmental conditions and transit financing, the charge expects to reduce traffic, cut emissions, and bolster subway and bus investments, despite previous delays.

New York plans to reintroduce a $9 congestion charge for driving in Manhattan as of January, Governor Kathy Hochul announced Thursday. The program, initially set at $15, was delayed earlier this year. Aimed at cutting gridlock and funding transit improvements, the charge will affect passenger vehicles driving south of 60th Street.

Hochul noted the reduced fee is essential for generating $15 billion in debt financing dedicated to enhancing New York's subways and buses. Trucks and buses will face higher charges, while discounts for off-peak travel are planned. The Metropolitan Transportation Authority, serving roughly 6 million daily users, will vote on the charge next week.

According to the MTA, congestion pricing could trim traffic by 17%, enhance air quality, and slightly boost mass transit usage. The U.S. Transportation Department confirmed New York communicated its revised $9 charge plan, advancing towards implementation. Critics, including some New York Republicans, have voiced opposition, addressing concerns to President Trump.

(With inputs from agencies.)